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Abstract
As an agrarian economy Nepal, irrigation is most important to achieve economic development.
This research analyzes the impact of Bagmati irrigation project (BIP) in the command area.
A comparative study of the output, employment, income and other variables related to the
irrigated and un-irrigated agricultural land within and outside the Bagmati irrigation project
area has led to positive result. This study found that agricultural productivity increases from
19.32 percent to 102.78 percent in different crops. Likewise irrigation seems to have contributed
to increase employment, investment, net income.
1. BACKGROUND
Nepal being an agrarian economy, around 8l percent of its population is employed
in agriculture sector. It receives more than 40 percent of its national income from
agriculture. Unfortunately, the current growth rate in agricultural production is 2.4
(Government of Nepal, Ministry of Finance, 2054/55). To raise the living standard of
the people, it is evident that the improvement in agricultural is inevitable. To increase
the agricultural production, in turn, the use of various inputs such as improved seeds,
fertilizers, irrigation etc. are essential.
In Nepal more than 50 Percent of cultivated land is used only for seasonal agricultural
product. These lands remain idle for 6 months. Consequently the population of
unemployment is more severe. If we are able to irrigate agricultural land, employment
opportunity can be increased; it will also help to solve the problem of unemployment
to a greater extent. Agriculture Perspective Plan has stressed the role of agriculture
in generating employment opportunities and improving the living standard of
people. This plan has also defined irrigation as a strategic input and has prescribed
the conjunctive use of water in Terai region. As the agricultural sector contributes a
significant amount to the national income, the change in national income is a direct
reflection of the change in agricultural production. When national income increases
the per capita income will also increase. This is an effective indicator of economic
growth. Thus, it is essential to analyze the parameter of agricultural growth. In this
connection, irrigation is one of the most important inputs to increase the agricultural
* Mr. Dahal is Assistant Lecturer of Economics at Patan Multiple Campus, Tribhuvan University, Nepal
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Impact of Irrigation in ...
product particularly in the following two grounds. Firstly, we can increase the
agricultural product in the cultivated land with irrigation by enhancing the efficiency
of rest auxiliary inputs. And, secondly, we can extensively cultivate the uncultivated
agricultural land providing irrigational national facilities.
The total irrigable land in Nepal is estimated to be 2.18 million ha. Out of this 1.74
million ha. is in the plains of Terai region and rest 0.44 million is situated in the valleys
of the hill. Out of this potential irrigable areas, just 1.766 million ha. has been provided
irrigation. Moreover out of which some 1.06 million ha. are already developed (i.e.
provided with infrastructure) for irrigation. Of the latter figure, however, only about
71 percent is actually irrigated. That leaves some 29 percent of the developed command
area that could be brought under irrigation with relative ease, in addition to the nearly
700,000 ha. yet to be developed for irrigation. Areas covered by surface and ground
water irrigation are 854,000 and 206,000 ha. respectively and representing 80.6 percent
and 19.4 percent respectively of the total irrigated area.
The reported physical development of irrigation has been a subject of review since
the targets of agricultural development envisaged in the feasibility study report were
not met. Bagmati irrigation project is a large irrigation project and its performance
to a greater extent may represent the performances of other larger surface irrigation
project. Therefore, this study is based on Bagmati Irrigation Project(BIP). A review
of such project is essential in order to make them more productive. Such review also
warns us not to commit similar mistakes in the future. In this backdrop, this paper
aims at assessing the impact of irrigation in the command area of BIP. Specifically
this paper aims to measure the contribution of irrigation in increasing agricultural
productivity and employment in and around the Bagmati Project area.
2. REVIEW OF LITERATURE
Although irrigation and water resources has been the subject of study for a long
time, systematic attempts measuring the effect of the irrigation project on agricultural
productivity, employment, and responsiveness of co-operating factors in an integrated
manner is scarce. Here some of the available and relevant previous studies have been
reviewed in order to be familiar with the works done earlier. In the review, more
attention has been given to the objectives, methodology and findings.
Raut (1987) made a case study of Manusmara Irrigation project of Sarlahi district. The
main objective of the study was to analyze Manusmara irrigation project in the light
of the co0jntribution made by it to wellbeing of the agricultural peasants. To fulfill
the objective, the researcher has used cost benefit analysis method to analyze the data
collected through primary and secondary sour4ces. It was found that the cost benefit
ration more than unity. So, it was concluded that the project was financially feasible
and it could benefit the farmers residing in the project area.
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Ananta Ran Dahal
One more Impact Evaluation Study of Mahakali Irrigation Project was done by
Mahakali Irrigation Project (1985). The main objective of this study was to evaluate
the contribution of irrigation project in agricultural development, to study the impact
of the project and to study the problems associated with full utilization of irrigation.
To meet his objective, the primary data was collected through the cross-sectional
method. The finding of this study indicated that this irrigation project had increased
the productivity of land and increased the framers production, investment and
employment and also it helped to cultivate the uncultivated land. It also helped to
increase the price of land. Thus, this study showed the positive impact of the project
in the project area.
Lamsal (1989) made a study on Impact of Vijayapur Begnas Irrigation Project in Pokhara
valley as a case study of Lekhanath and Roki Millage Panchayat. The main objectives
of this study was to find out the impact of irrigation of the cultivated land of that area
and to analyze the changes in the production of various crops and price of land after
irrigation facility. It used both primary and secondary data to conduct this study. A
comparison between the productions, investments and employment of irrigated and
un-irrigated land was made. This study found that the project increased the production
of the area. It helped to cultivate the uncultivated land increased productions. Analysis
on investments and employment of irrigated and un-irrigated land was made.
Irrigation facility helped to cultivate the uncultivated land, and to increase the price of
the agricultural land. So the impact of this project was positive.
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Impact of Irrigation in ...
A feasibility study for the Rajapur Irrigation Rehabilitation project was made by
EURO consult, the Netherlands Incorporation with APROSC Nepal (1990). The main
objectives of this study were to identify the critical issues and problems related to water
resources, irrigation, agriculture and socio-economic constraints and give direction to
further feasibility investigations during stage 2. For the analysis, both the primary and
secondary data were used. The results obtained that irrigation had positive impact of
productivity, cultivation and price of land. It also increased agricultural employment.
So this report showed that this irrigation project had positive impacts in all respects.
Dhital (1983) assessed the socio-economic condition of households within Puwa Khola
Irrigation Project in Ilam. The main objectives of this study are to assess the socio-
economic condition of the households within the command area. It used both primary
and secondary data in the course of analysis. Its findings showed that this project
positively affected the socio-economic condition of the people of that area in terms of
production, employment, income and investment. In aggregate, this project played
significant role to uplift the economic status of the local people.
3. RESEARCH METHODOLOGY
Both descriptive as well as explanatory research method were used for the data
analysis. The descriptive methodology is in the sense of describing the existing
situation of the issue where as exploration means the prediction of the future prospect.
The study is based on primary sources of information. To collect such information 50
households having irrigated land and 25 households having un-irrigated lands were
selected as samples for household survey on the basic of simple random sampling.
The geographical locations of survey were Chandranigahapur and Santapur Village
Development Committees (VDCs) of Rautahat district of Nepal. The equal number of
household are selected form the both VDCs. For the qualitative information, the civil
servants, member of VDCs, teachers and local intellectuals were also interviewed.
Relevant secondary data and information were collected from various government
offices like Development of Irrigation, Bagmati Irrigation Project office, District
Irrigation Office, VDC offices of Chandranigahapur and Santapur VDCs and used
according to their need.
In this research multiple ordinary least square (OLS) regression model was used to
get the expect result. To apply regression technique the collected data were processed
using software like Excel and SPSS. To see the responses of inputs in irrigated and un-
irrigated agricultural land, the following functions were considered.
In both of regression models ao, a1, a2, a3 are the parameter where are U1 is the error
term. All these parameters are estimated by Ordinary Least Square (OLS) method. For
this SPSS software is used.
From Table 1, we come to know that there is 34.98% increase in the total production
with irrigation facility. Among the four cultivated crops, mustard and oil-seeds have
been found more affected by irrigation. The productions of mustard and oil-seeds have
increased by 67.99% in irrigated land compared to their production in non-irrigated
land. The production of paddy, on the other hand, has also increase by 41.49 percent.
Because of the availability irrigation facility, there has been possible to cultivate some
of the agricultural lands three times a year. Thus, Bagmati Irrigation Project has
increased the total production of farmers significantly.
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If we calculate the farm income of farmers, we find that their income altogether has
increased by 75.85% by crop; the increase in the terms of financial analysis of paddy
is by 112%. Paddy is planted in summer season and it needs much water. Summer
season is the suitable season for paddy in Nepal. The area without irrigation can have
two crops but with irrigation three crops. In case of wheat and maize production, the
farm income has increased by 45.46% and 50.33% respectively. The increase is even
more in case of mustard and other oilseeds (112.78%).
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Ananta Ran Dahal
The land with irrigation provides more employment than the land without irrigation.
Our data show that the employment in paddy cultivation in irrigated land increased
by 13.65 percent. But in case of wheat the level of employment has decreased by
1.78 percent. This may be due to the use of previously wheat-cultivated-land for the
cultivation of other crops like paddy. The other reason is that farmers used modern
agricultural tools such as tractor to plough and thrasher to thresh the wheat. This also
led to the decrease in level of employment. In case of maize, the employment level
increase by 74.33% with irrigation facility.
It is obvious that there is more production in an irrigated land. According to the table
the incremental return of paddy, wheat, maize and other crops is Rs.1620, Rs.3371,
Rs.627 and Rs.3878 in respectively and in percent they are 23.076, 45.48, 19.32 and
102.78 per bigha respectively. Farmers cultivate only two crops in an un-irrigated
land in a year but they can cultivate three crops in the irrigated land. As a result the
additional crop can increase farmers income. Thus irrigation has increased farmers
net return.
e) Farm Budget
Irrigation has played a vital sole in the investment of peasants. Total investment and
income of farmers is shown in Table 5.
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This table has also shown the production and net profit of peasants. After the irrigation,
production has n increased and net profit has also increased. In the non-irrigation sector
paddy is sold in Rs. 7021 but in the irrigation sector, they have got Rs. 14886 net income.
Thus, irrigation has increased the income of peasants by double. Different types of crops
like paddy, wheat, maize and others have been increased by irrigation from the peasants
income side, irrigation has played positive hold. They are eager to invest their asset in
irrigation because after the irrigation, they have got increased income. Investment is
increased in paddy and corn but the same thing is not found in wheat. Low investment
in wheat is the result of modern technical system in farming. Now peasants are using
their capital not labours. This process has reduced the investment.
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Ananta Ran Dahal
The comparison shows that output is more on irrigated land than in land without
irrigation. The production of paddy is 1542.40 kg. per bigha, wheat is 1323 kg., maize
is 677375 kg., and 248.36kg per Bigha. But in irrigated land production of paddy is
2182.40 kg., wheat 162505 kg., maize - 887.81 kg., and others 417.22 kg per Bigha. All
the production has increased due to irrigation as shown in the table. The productions
of paddy, wheat, maize, and other crops have increased by 640, 302.05, 214.08 and
168.86 kg., respectively. If we express the increases into percent, they will be 41.19,
22.83, 31.77 and 67.99 percent respectively. Output has been increased incase of all
crops but the output of other crops and paddy has highly increased. Thus irrigation
has brought positive change in farming.
Case: 1
R= 20733.688 + 1.315L + 2.005S - 2.2487F
t= (2.726) (2.342) (0.557) ** (2.241)
F=(7.329)* r2 = 0.323
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Case: 2
R = 29238.332 + 1.823L
t =(4.636) (3.816)
F =(14.583) r2 = 0.233
The coefficient of labour is found to be highly significant at 0.000 significant level. Thus,
if we increase L by unity the returns from the land would increase by 1.823 times, The
value of R2 in this case is 0.233 which implies that only the 23.3% of variation in famers
return (R) is explained by L and the remaining 76.77% variation of R is explained by
other variables. However the value of F is found highly significant at (1, 48) degree of
freedom which implies that the there is good linear relationship between returns and
labour.
Case: 3
R = 31159.847 + 9.284 S
t = (4.046)* (2.842)*
F = (8.079) r2 = 0.144
Case: 4
R = 37559.506 + 3.267 F
t =(7.644 )* (3.239)*
F =( 10.491)* r2 = 0.179
In this case also the coefficient of fertilizer is found to be significant at 0.002 percent
significant level. The value of r3 = 0.173 shows that only 17.3% of R is explained by
fertilizers. F is also found to be significant at 0.002% significant level that means there
is the good linear relationship between the variables.
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Ananta Ran Dahal
*t is found significant at 0.02 significant level, all other t-values are found
insignificant.
**F is found insignificant at the conventional level of significance (i.e., F-statistics is
insignificant at 1%, 5% and 10% level of significance).
The coefficient of each of the independent variables is found insignificant. The sign
coefficient of fertilizer (F) is unexpectedly negative. The value of F is also found to be
insignificant at (3,19) degree of freedom, which implies that there may not be good
linear relationship between the dependent and independent variables.
Case: 2
R = 25884.92 + 0.573L
t = (4.415)* (0.945)**
F= (0.893) *** r2 = 0.0373
Case: 3
R = 27406.604 + 1.7512S
t = (5.41) (0.793)*
F =(0.629)** r2 = 0.02663
Case: 4
R = 32198.928 - 0.36074 F
t = (6.265) (-0.258)*
F (0.0657)* r2 = 0.0031
*t is found highly insignificant
**F is found insignificant at 0.8001 insignificant level, i.e., it is found highly insignificant
at (1.21) degree of freedom.
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Economic Journal of Development Issues Vol. 15 & 16 No. 1-2 (2013) Combined Issue Impact of Irrigation in ...
In each of the above model both t and F are not found to be insignificant which indicates
that of the independent variable properly influences the dependent variables nor is
there any linear relationship between them.
To conclude the analysis we must disclose the fact though there is a positive impact
of irrigation on different aspects of farmers earning and input use , there is still a
divergence between the Bagmati Irrigation Project (BIP)s expected and realized
increase in agriculture production.
5. CONCLUSION
In the command area of BIP the irrigation has contributed to the increase in crop
production at different range. The lowest rate of increase in wheat production is 22.83
percent and highest rate of increase in other crop production is 67.99 percent. So,
irrigation has highly positive impact on total agricultural production.
Irrigation has positive impact on farm income too. The lowest rate of increase in
farm income from wheat is 45.46 percent and a highest rate of increase from paddy is
112.014 percent.
The comparative study of crops in lands with and without irrigation indicates that the
outputs of all crops have increased with irrigation but the rate of increase in paddy and
other crops are more or less same as the farm employment before and after irrigation.
It becomes clear that the employment situation of farmers improved significantly due
to the increase in cropping intensity. From the comparative study of farm it appears
that there is increase in return, the lowest return from the maize is 19.32 percent and
the highest return from the other crops is 10.278 percent.
The study showed that this BIP irrigation project has increased net income of
farmers and this project also played a vital role to increase price of land too. After the
implementation of this project the price of land has increased from time to time.
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